Monday, March 17, 2008

99.25 or 96.25 % Loan

No I'm not kidding folks. I was watching TV last night on one of the local channels and a thirty second ad popped up for a loan company. You could borrow a max of around $5000 dollars with no collateral. The ad gave an 800 number and a quick blurb of "make sure you can pay this loan back" with really small fine print. It was on two or three times and I jumped up off the couch at one point to catch the fine print. I kid you not, an interest rate of either 99.25% of 96.25% on an "average" loan of $2,600. I'm going to watch that channel again tonight and see if I can actually READ the fine print. I wonder who will call or who is desperate enough to call......

3 comments:

Dedicated said...

The one that will call, will be the one who can afford it least. They take advantage of the poor. Like Vultures.

SavingDiva said...

Jeez! I've heard of check cashing places charging rates like this, but when it's right there to see it's a little daunting.

Ms. M&P said...

That's horrible. Predatory lending, anyone? There should be a cap on how high companies can charge interest.